Not good enough, says Michael Mauboussin, the chief U.S. investment strategist at Credit Suisse First Boston.
Michael Mauboussin, the chief U.S. investment strategist for Credit Suisse First Boston, goes for Enron.
As participants in any given activity improve across the board, says Mauboussin, the standard deviation shrinks.
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Mauboussin, 36, became fascinated by real options as he attempted to explain the valuation of speculative technology companies.
Mauboussin points out that there are differential capabilities in nearly everything in life, and investing is no exception.
As Mauboussin points out, the Paradox of Skill is a concrete way to describe the efficient market hypothesis.
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Michael Mauboussin, Chief Investment Strategist of Legg Mason, is one of the most thoughtful practicing investors I know.
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Think about that when you value companies that own film libraries, says Mauboussin.
Mauboussin contends a pattern of inconsistency in an activity points to outcomes that are largely a result of luck, not skill.
Michael Mauboussin, chief U.S. investment strategist with Credit Suisse First Boston, goes for Enron, suggesting that the acquisition by Dynegy will take place on current terms.
In other words, as Michael Mauboussin of the fund-management group Legg Mason remarks, the collective is smarter than the average person within the collective.
If consistent performance is a product of skill as Mauboussin contends, than index fund investing is certainly a skillful decision for an investor to make.
More than a year ago Mauboussin started talking to scholars exploring real options, like Martha Amram, a managing director at Chicago's Navigant Consulting and a former professor at Boston University.
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